One of downtown Austin’s last undeveloped full city blocks is in the hands of Hines.
The Houston-based developer signed a ground lease with the Texas General Land Office for the William P. Hobby Jr. State Office Building site, a three-building complex at 333 Guadalupe Street, the Austin Business Journal reported.
The GLO teased in July that it had inked a deal with a “prominent developer” but kept the name under wraps until now. Hines confirmed the partnership this week, while the state agency declined to provide further details on what’s planned for the roughly 2-acre property, which holds a vacant 419,000-square-foot state office complex.
The project marks the end of a months-long selection process that drew bids from some of the state’s biggest players, including Related Companies, Endeavor Real Estate Group, DHA Capital and Urbanspace, according to records obtained by the outlet. The GLO said its decision weighed developers’ experience and financial strength, calling Hines a “Texas business with a sterling reputation.”
While plans remain under wraps, the state has previously indicated it wants a mixed-use redevelopment incorporating residential and commercial components, with workforce housing among them.
The site could be redeveloped by right to a maximum of 1.9 million square feet, with no height maximum or parking requirements, according to a CBRE brochure.
The sky is the limit, aside from financing and construction costs. Maxing out density-bonus zoning could yield an 18-story office building, a 20-story hotel with 600 keys and 650 resi units soaring 104 stories, plus retail and parking, the marketing materials suggested.
The site’s location — next door to the newly opened 800,000-square-foot office tower The Republic — makes it one of the most high-profile redevelopment opportunities in the Texas capital.
The Hobby Building, which has been deteriorating for years, was slated for demolition but is still standing. Once cleared, the block could anchor a wave of density on Austin’s west side, where private projects have increasingly filled the skyline gaps once dominated by government properties.
For Hines, the deal extends its deepening Austin footprint. The firm is behind the T3 Eastside mass-timber office building and several master-planned communities in the metro. It also has plans for a 608,000-square-foot office project at The Domain, after shelving a prior build-to-suit for IBM.
— Eric Weilbacher
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